answer key

Satisfactory Essays
10/1/2012
CORPORATE FINANCE
FIN 3313.01 Fall 2012
1st MID-TERM
SINAN YILDIRIM

NAME

(Each Multiple choice question is worth 4 points)

1. The goal of financial management is to increase the:

a. future value of the firm 's total equity.
b. book value of equity.
c. dividends paid per share.
d. current market value per share.
e. number of shares outstanding, thereby increasing the market value of equity.

2. A corporation:

A. is ultimately controlled by its board of directors.
B. is a legal entity separate from its owners.
C. is prohibited from entering into contractual agreements.
D. has its identity defined by its bylaws.
E. has its existence regulated by the rules set forth in its charter.

3. Which of the following are advantages of the corporate form of organization?

I. ability to raise large sums of capital
II. ease of ownership transfer
III. corporate taxation
IV. unlimited firm life

a.I and II only
b. III and IV only
c. II, III, and IV only
d. I, II, and IV only
e. I, II, III, and IV

4. Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?
A. Increase the costs of going public
B. Increase protection against corporate fraud
C. Limit secondary issues of corporate securities
D. Decrease the number of publicly traded firms
E. Increase the number of firms that "go dark"
5. Which of the following are included in the market value of a firm but not in the book value?

I. technical knowledge of the employees
II. quality of the management team
III. experience of the employees
IV. reputation of the firm

a. IV only
b. I and III only
c. II and IV only
d. I, II, and III only
e. I, II, III, and IV

6. Which one of the following is most apt to align management 's priorities with shareholders ' interests?
A. Increasing employee retirement benefits
B. Compensating managers with shares of stock that must be held for 3 years before the shares can be

You May Also Find These Documents Helpful

  • Good Essays

    Answer Key

    • 33442 Words
    • 134 Pages

    The first step in mastering ICD-10-PCS is to become familiar with the terminology, structure and format of this new code set. In addition to the Flash Card software program found on the CD-ROM in the back of the text, AHIMA also offers a deck of ICD-10-PCS flashcards. These high quality flashcards will help you to learn all of the definitions. The full-color flashcards define the 31 Medical and Surgical Root Operations and the 7 Approaches. The deck also contains 16 cards that illustrate the character values of each of the Sections of ICD-10-PCS.…

    • 33442 Words
    • 134 Pages
    Good Essays
  • Powerful Essays

    TKAM Answer Keys

    • 14096 Words
    • 89 Pages

    Answer Keys English Language Arts Grade To Kill a Mocking Bird Unit A rn Resource 1.3 Key Marilyn Monroe – classic film star/beauty icon Model T – classic car Coca-Cola – classic American beverage Muhammad Ali – classic boxer (may also think of classic fights) WWII photo – classic image of V-J Day Vans – classic sneaker The Fonz (Henry Winkler from Happy Days)…

    • 14096 Words
    • 89 Pages
    Powerful Essays
  • Satisfactory Essays

    Answer Key 3

    • 275 Words
    • 2 Pages

    A character faces a conflict because the weather is dangerous. What kind of conflict is this?…

    • 275 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Inflation Is Assumed

    • 7686 Words
    • 31 Pages

    15. A major focus of the Sarbanes Oxley Act is to make sure that publicly traded companies accurately present their assets, liabilities and income in their financial statements.…

    • 7686 Words
    • 31 Pages
    Powerful Essays
  • Good Essays

    Midterm BUSN120

    • 1412 Words
    • 8 Pages

    5. Which of the following are beliefs and principles that provide the ultimate guide to a company's decision making?…

    • 1412 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Answer Key

    • 940 Words
    • 4 Pages

    Banks' attempts to solve adverse selection and moral hazard problems help explain loan management principles such as…

    • 940 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ACC 599 Week 3 Assignment 1 – Impact of the Sarbanes-Oxley Act (SOX) – Strayer New…

    • 402 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    PS5 Answer Key

    • 627 Words
    • 3 Pages

    to think about them using the IS curve, and explain how GDP is affected in the…

    • 627 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Maximization of shareholder wealth is said to be the primary goal of a firm. The financial manager has the responsibility to act in their best interests. Since, the common stockholders are the firm’s most important stakeholders to continue operate the business. This goal means that the financial manager can best serve business owners by identifying goods and services that add value to the firm because the market place desires and values what the firm offers. Firms should make a decision that would increase in the value of stocks over a period of time. A business should also outlook in the firm’s responsibility to its shareholders and to environment.…

    • 267 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    assignment 2 answer key

    • 5831 Words
    • 51 Pages

    Business Telecom Strategy & Applications I Chapter 1 Introduction to Data Communications ISM6222 Copyright 2011 John Wiley & Sons, Inc Course Overview  INSTRUCTOR  Name: Young Kwark  Office: 347 STZ  E-mail: youngkwark@ufl.edu  Subject: ISM6222  Office hours: Wed 10am–noon or by appointment  Class Website: http://lss.at.ufl.edu  Sakai System  Log in with your Gatorlink id and password Course Overview • Grading Policy Group Project Individual/Group Assignments Exam1 Exam2 Exam3 Participation 20% 10% 20% 20% 20% 10% 100% Course…

    • 5831 Words
    • 51 Pages
    Powerful Essays
  • Satisfactory Essays

    9. In general, do you feel the firm’s strategic decisions and actions should be sensitive to the society’s well being?…

    • 340 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    What are some actions that stockholders can take to ensure that management's and stockholders' interests are aligned?…

    • 468 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Microeconomic Homework

    • 1049 Words
    • 4 Pages

    Q8: What are some of the forces that cause managers to act in the interest of shareholders?…

    • 1049 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    S E C T I O N 4 0 4 O F T HE SARBANES-OXLEY ACT…

    • 77064 Words
    • 310 Pages
    Powerful Essays
  • Good Essays

    Home quiz

    • 405 Words
    • 4 Pages

    2. A scandal in which of the following corporations pushed the Congress to pass the Sarbanes-Oxley Act of 2002?…

    • 405 Words
    • 4 Pages
    Good Essays